________ is the name of the most common liquidity ratio, current assets to current liabilities.
A) Debt-equity ratio
B) Current ratio
C) Profit and loss ratio
D) Return on investment ratio
E) Stockholders' equity ratio

Question

Quizplus · Accepted Answer

Current ratio measures a company's ability to pay off its short-term liabilities with its short-term assets. It is the most common liquidity ratio and is calculated by dividing current assets by current liabilities.

________ Is the Name of the Most Common Liquidity Ratio